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30 January 2024

Must a leader be a strategist ?

Some argue that strategic thinking is essential for effective leadership, others believe that other skills, such as communication, adaptability, and decision-making, are more important. Who is right?

According to a recent Harvard Business Review publication, there are six essential skills that make up strategic leadership: the abilities to anticipate, challenge, interpret, decide, align, and learn. These skills allow leaders to think strategically and navigate the unknown effectively. However, it is important to note that strength in one skill cannot easily compensate for a deficit in another. An adaptive strategic leader has learned to apply all six at once.

On the other hand, McKinsey has been suggesting for several years that leadership is the starting point of strategy. They argue that if the number of leaders needed to achieve a strategic goal were set against the number of existing leaders, a company could uncover the numeric leadership gap it must address. Even if an organization has enough leaders, it may discover a shortfall in their capabilities.

When being strategic is not enough

While strategic thinking is undoubtedly important, it is not the only skill that leaders need to possess. Communication, for example, is a critical skill for leaders to have. Leaders must be able to clearly explain everything from expectations to goals and tasks. It is also important to establish open communication between yourself and your team members. Not only does creating an environment of open communication promote cohesiveness as a team, but it often encourages an atmosphere of transparency. Excellent communication considers not only what is being communicated, but how it is being communicated. As an effective communicator, you do more than just clearly verbalize expectations. You also incorporate active listening, nonverbal communication, presentation skills, and engaging public speaking.

Another important skill for leaders is adaptability. As an adaptable leader, you adjust your behaviour in response to situational changes. You are resilient when things don’t go as expected and recover quickly from setbacks by viewing them as an opportunity to grow.

When being strategic is necessary

If a leader is not strategic, they may struggle to make informed decisions, which can lead to poor outcomes for the organization. For example, if a leader fails to anticipate changes in the market or industry, they may miss out on opportunities to grow the business. Similarly, if a leader is unable to align the goals of the organization with the needs of its stakeholders, they may struggle to build support for their initiatives.

Being strategic is important for a leader because they can take an outside-in view of how things are and should be done, they can make things happen at a time that suits the organization, rather than waiting for events to force them to change, they can ensure that everything is aligned, with the entire organization committed to the journey, not just a department or two. And especially, they can be perceptive, future-oriented, open-minded, proactive, working off the front-foot, and making and taking decisions based on evidence and calculated hunches.

Why being a leader is a strategic activity

My preferred short definition of leadership is “having followers”. A leader needs to be able to engage with their team, needs to maintain the momentum and achieve results through others. This is sometimes very operational and tactical because many “small” decisions also need to be taken. Therefore, without an overall leadership strategy it easily becomes “zig-zag leadership”, just like when you drive a car while looking only just ahead of the hood, instead of looking far ahead: micromovements are unnecessary when you have a clear “long” direction.

Agreed, while strategic thinking is an important skill for leaders to have, it is not the only skill that is necessary for effective leadership. Leaders must also be able to communicate effectively, adapt to changing circumstances, make informed decisions, and lead their teams towards success. But strategy is also about harnessing a range of knowledge, skills, emotions and decision factors. By finding their own magical strategy mix, they can become true leaders and stay in charge of their destiny.

A friend of mine, Scott Newton has found his mix and would allow me to quote him saying “Strategy is Mastery”. Did you find your magical strategy mix? Please share your thoughts !

#strategy #leadership #talentdevelopment #adaptive #AreYouReady ?

Frode Hvaring, Managing Director at Novelia SA